So how's the risk management program faring at your bank? Some may think of risk management (enterprise risk management news) as a mere buzz word. But most would agree that the hype around the term has been more than justified in the wake of the financial crisis.

All banks have been forced to tighten up. Some have come a long way when it comes to strengthening their practices. But a recent survey from Economist Intelligence Unit (EIU) for SAS suggests that regulatory compliance may be distracting attention "from emerging risks while the prevalence of a silo-based approach at several organizations hampers risk management" at an enterprise level.

"Silo-based approaches to risk management still plague financial institutions. Fewer than half of respondents believe they understand how risks interact across business lines. Poor department communication hampers effective risk management. Many institutions need to strengthen risk management programs to meet more diverse and frequent reporting requirements from the board: Only 47 percent say they can provide timely and relevant risk reports to their boards," says SAS.

So, there is a lot of work to be done. Unfortunately, there seems to be an expertise shortage at many levels, from the board on down. Part of the complication now is the sheer uncertainty resulting from the regulatory situation, which is still in flux. At some point, a clearer picture will emerge.  

For more:
- here's the release

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